Flex Space with Trade
For Sale
$900,000
412 E Railroad Avenue N, Manhattan, MT 59741
Configured for workshop operations with overhead heat, radiant-heated offices, dust collection, and an air system.
Property Size8,700 SF
Price / SF$167.41
Days on Market588
Property Features for 412 E Railroad Avenue N
General Information
Standard status
Active
Size
8,700 SF
Property subtype
Commercial
Zoning
Call Listing Agent for Details
Taxes and HOA fees
Annual Taxes
$3,000
Building Details
Building Size
8,700 SF
Year Built
1982
Listing Agency:
Engel & Volkers - Bozeman
(406) 995-2404
Listed By:
Graham Miles · License #108402
(406) 686-1020
Source:
Outlaw
Added: Feb 24, 2025
Changed: Oct 3
Last Checked: Oct 4 at 8:31AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Engel & Volkers - Bozeman
Investment Insights
Based on property information with market context.
This 5,376-square-foot flex property includes a shop area supported by three overhead heaters and separate offices with radiant heating. The building also has a dust collector and air system, providing equipment for woodworking, metalworking, and comparable trade uses.
The property is located at 412 E N Railroad Avenue in Montana and is currently leased. Its combination of workshop infrastructure, dedicated office areas, and installed systems offers a functional setup for industrial or production-oriented operations.
The property is located at 412 E N Railroad Avenue in Montana and is currently leased. Its combination of workshop infrastructure, dedicated office areas, and installed systems offers a functional setup for industrial or production-oriented operations.
Key Highlights
- 5,376‑square‑foot flex space with shop and separate offices
- Three overhead heaters serve the shop area
- Separate offices equipped with radiant heating
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$65,406
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
7.27%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,308,120
$1.3M
Cap Rate 7%
$934,371
$934.4K
Cap Rate 9%
$726,733
$726.7K
Market Conditions
NOI Build-Up for 5,376 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$107.7K $20.04/SF
− Vacancy
−$7.1K −$1.32/SF
EGI
$100.6K $18.72/SF
− OpEx
−$35.2K −$6.55/SF
NOI
$65.4K $12.17/SF
Area
Gallatin County, MT
Vacancy
6.60%
Lease Rate
$20.04 /SF/Yr
Expense Ratio
35.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,308,120
Cap Rate 7%
$934,371
Cap Rate 9%
$726,733
Alternative Uses
Best Use
Flex RnD
$934.4K
$817.6K – $1.09M
NOI $65,406 @ 7.0% cap · market cap 7.27%
Second Best
Industrial
$797.5K
$697.8K – $930.5K
NOI $55,827 @ 7.0% cap · market cap 6.20%
Theoretical Best
Office A
$1.40M
$1.23M – $1.64M
NOI $98,265 @ 7.0% cap · market cap 10.92%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
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Open Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
197
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 59741, MT
5,397
Population
2,330
Households
2.3
Avg Household Size
39
Median Age
36%
College-Educated
99%
High-School Grad
164.9 sq mi
ZIP Area
33
Density / Sq Mi
$86,382
Median Household Income
$48,460
Median Earnings
$1,676
Median Rent
$562,300
Median Home Value
Check the figures for this property
Cap Rate, Value Estimation, Potential NOI and more
View Realmo Analytics
Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Flex space - Configured for workshop operations with overhead heat, radiant-heated offices, dust collection, and an air system.
Where is this flex space located?
The property is located at 412 E Railroad Avenue N Manhattan, MT.
What is the asking price?
The asking price for this property is $900,000.
What are key features of this property?
This property features: 5,376‑square‑foot flex space with shop and separate offices; Three overhead heaters serve the shop area; Separate offices equipped with radiant heating
